Written Answers Nos. 288-307
288. Deputy Pearse Doherty asked the Minister for Finance further to Parliamentary Question 137 of 25 September 2018, the status of the review of the area of pension transfers abroad; and if he will make a statement on the matter. [3061/25]
Amharc ar fhreagraI am advised by Revenue that the transfer of deferred benefits may be made from an occupational pension scheme or a Personal Retirement Savings Account (PRSA) to an overseas pension arrangement, once such a transfer complies with the Occupational Pension Schemes and Personal Retirement Savings Accounts (Overseas Transfer Payments) Regulations 2003, available at www.irishstatutebook.ie/eli/2003/si/716/made/en/print. The Regulations are under the remit of the Minister for Social Protection and prescribe the conditions for transfers to pension arrangements established outside the State.
Such conditions must therefore be satisfied to ensure that a transfer to an overseas pension scheme is a bone fide transfer. When facilitating the transfer of an occupational pension scheme or PRSA to an overseas pension scheme, the trustees or PRSA provider must be satisfied that:
(a) the member or PRSA contributor has requested a transfer,
(b) the overseas arrangement provides relevant benefits as defined by section 770 Taxes Consolidation Act 1997 (TCA), and
(c) the overseas arrangement has been approved by the appropriate regulatory authority in the country concerned.
To comply with (b) and (c) above, the trustees or PRSA provider should also obtain written confirmation from the administrator of the overseas arrangement to which the transfer is to be made.
Transfers from an Irish pension scheme to a pension scheme in another EU Member State, must be to a scheme which is operated or managed by an Institution for Occupational Retirement Provision (IORP) within the meaning of the EU Pensions Directive, and must be established in a Member State of the EU which has implemented the Directive in its national law. Transfers are also permitted from an Irish pension scheme to a pension scheme in the United Kingdom which is subject to governance and regulatory requirements similar to those under the IORP Directives. The scheme administrator must be resident in an EU Member State or the UK as appropriate.
If the transfer is to a country outside the EU (other than the UK) a transfer may not be made to a country other than the one in which the member is currently employed.
This is an area that remains the subject of engagement between my Department and Revenue, and other stakeholders as required with a focus on ensuring that all pensions tax relief is availed of in an appropriate manner.
289. Deputy Pearse Doherty asked the Minister for Finance to clarify the planned duration of the extension of the landlord tax credit as committed to in the Programme for Government; and if he will make a statement on the matter. [3063/25]
Amharc ar fhreagraThe Residential Premises Rental Income Relief (RPRIR) provides relief, at the standard rate, on a portion of a landlord’s residential rental income. The relief is €3,000 in the tax year 2024, €4,000 in the tax year 2025 and €5,000 in the tax years 2026 and 2027, which is equivalent to a tax credit of up to €600, €800 and €1,000 respectively. This measure is effective until the end of 2027.
As the Deputy will appreciate, decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time, and having regard to the sound management of the public finances.
290. Deputy Pearse Doherty asked the Minister for Finance the estimated share of projected corporation tax that is anticipated to come from multinational corporations subject to the 15% corporate tax rate; and if he will make a statement on the matter. [3068/25]
Amharc ar fhreagraI have assumed that the Deputy is referring in his question to the OECD Pillar Two minimum tax rules, which were implemented in Ireland through the transposition of the EU Minimum Tax Directive in Finance (No. 2 Act) 2023. The Pillar Two rules apply to multinational groups and large-scale domestic groups that have annual revenue of €750 million or more in the consolidated financial statements of the ultimate parent entity of the group in at least two of the four previous fiscal years. The rules require such groups to pay a minimum effective tax rate of 15% on a jurisdictional basis, and by reference to a Pillar Two tax base based on consolidated financial accounts.
The Pillar Two rules have been implemented in Part 4A of the Taxes Consolidation Act (TCA) 1997 and apply in respect of fiscal years commencing on or after 31 December 2023. The first ‘pay and file’ date for groups within the scope of the Pillar Two rules in Ireland is 30 June 2026.
As the scope of the rules is based on consolidated accounting financial data, it is not currently possible to identify all entities which may be in scope. However, an approximation of the number of entities in scope of the rules can be made by using data from country-by-country (CbC) reporting as a multinational group with annual consolidated group revenue of €750m or more in the preceding fiscal year is required to file a CbC report. Therefore, while the scope of the CbC reporting requirements is different, it provides a useful approximation of those entities that will be in scope of Part 4A TCA 1997.
I am advised by Revenue that, based on this approximation, it is estimated that in the years 2021 to 2023, between 68% and 89% of net CT was paid by entities provisionally considered to be within scope of Pillar Two. It is important however to acknowledge that there is a notable band of uncertainty around the potential number of in-scope entities as the Pillar Two rules have distinct differences from existing reporting frameworks. It is further noted that the approximation is based on historical data and cannot take account of future changes in MNE profitability and/or behavioural responses, which may impact on the number of entities in scope. The recent change in administration in the US and its position in relation to the OECD Agreement, together with implementation decisions in other jurisdictions globally, could also have implications in respect of the ultimate economic impact of the introduction of Pillar Two.
291. Deputy Pearse Doherty asked the Minister for Finance if consideration has been given to extending the period that widows and widowers continue to benefit from being jointly assessed for tax purposes; and if he will make a statement on the matter. [3072/25]
Amharc ar fhreagraI am advised by Revenue that the current position is that where a couple are jointly assessed and one spouse or civil partner dies during a tax year, the following treatment applies:
• In the year of bereavement, the widowed spouse or civil partner is entitled to the same personal tax credits as a married couple, if surviving spouse or civil partner is the assessable spouse or nominated partner.
• If the surviving spouse or civil partner is not the assessable spouse or nominated civil partner, they will receive the increased personal tax credit available to a widowed person or surviving civil partner in the year of bereavement and be assessed on their income from the date of bereavement of the spouse or civil partner until the end of the year.
The Taxes Consolidation Act 1997 (TCA) also provides for the number of credits that are available to bereaved spouses and civil partners:
• Section 461A TCA provides for an additional tax credit for a widowed person or surviving civil partner without dependent children, which may be claimed in the year of assessment following the year of bereavement. The value of this credit is €540 and the widowed person or surviving civil partner is entitled to same in addition to the basic personal tax credit.
• Section 463 TCA provides for the widowed parent tax credit. This tax credit is available in the five years following the year of bereavement for widowed parents and surviving civil partners with dependent children. The credit is tapered over the five years following the year in which the person is bereaved, as follows:
• €3,600 in the first year after bereavement,
• €3,150 in the second year after bereavement,
• €2,700 in the third year after bereavement,
• €2,250 in the fourth year after bereavement and
• €1,800 in the fifth year after bereavement.
In order to qualify for the widowed parent tax credit, the widowed person must not have remarried by the start of the relevant tax year and must have a qualifying child residing with him or her for all or part of the year. The credit may only be claimed once, regardless of the number of qualifying children the bereaved person has.
• Section 462B TCA provides for the single person child carer credit (“SPCCC”), which may be available in the years following the year of bereavement where all of the conditions of the provision are met. The SPCCC amounts to €1,900 for the 2025 year of assessment.
Widowed parents who are in receipt of the SPCCC will also be entitled to an increased standard rate band of €4,000 in addition to the single person’s tax band.
Further detailed guidance on the tax treatment of bereaved spouses and civil partners can be found on Revenue Website at: www.revenue.ie/en/life-events-and-personal-circumstances/death-and-bereavement/widowed-person-or-surviving-civil-partner/how-taxed-after-bereavement.aspx
In relation to the Deputy's specific question, I do not currently have any plans to extend the period that widows and widowers continue to benefit from being jointly assessed for tax purposes.
293. Deputy Aidan Farrelly asked the Minister for Finance if he will provide an update on the review of the Register of Beneficial Ownership and access to same; and if he will provide an update on the work completed in respect of related directives associated with same. [3104/25]
Amharc ar fhreagraIn November of 2022, the Court of Justice of the European Union ruled that a provision of the EU anti-money laundering (AML) directive, under which information on the beneficial ownership of corporate and other legal entities held in central registers, must be provided to the general public, was invalid. The Court found that the provision interfered with the rights recognised in Articles 7 and 8 of the Charter of Fundamental Rights of the EU.
To ensure our domestic legislation continued to comply with the Court’s ruling a Statutory Instrument S.I. 308 of 2023, the European Union (AML: Beneficial Ownership of Corporate Entities) (Amendment) Regulations 2023 was enacted. This amends Regulations which governed two of Ireland’s registers of beneficial ownership information - the Register of Beneficial Ownership of Companies and Industrial & Provident Societies (RBO), which operates under the auspices of the Companies Registration Office, and the Central Register of Beneficial Ownership of Irish Collective Asset-management Vehicles, Credit Unions and Unit Trusts, which is operated by the Central Bank of Ireland.
Following the ECJ ruling, which invalidated indiscriminate general access by the public, the co-legislators have taken further measures to ensure that the framework for public access is on the basis of a demonstrable legitimate interest, which in turn is applied consistently across the Union. To this end, Directive (EU) 2024/1640 (‘AMLD6’), was agreed by the EU Council in May of 2024.
In this regard, it should be noted the EU Commission has recently surveyed all Member States in terms of their respective processes and procedures with respect to the access of their Beneficial Ownership central registers with a view to implementing this harmonised, EU-wide approach.
Accordingly, the new AML framework sets out categories of persons that are presumed to have a legitimate interest, and additionally requires Member States to grant access, on a case-by-case basis, to any other person who can demonstrate a legitimate interest with respect to the prevention and combating of money laundering and terrorist financing. Articles 10, 12 and 14 of the 6th Anti-Money Laundering Directive refer.
Specifically, Article 14 inter alia states ‘the Commission shall define, by means of implementing acts, technical specifications and procedures necessary for the implementation of access on the basis of a legitimate interest by the central registers referred to in Article 10. This framework will enable an access procedure, underpinned by standardised templates for requesting access; granting or refusing access; along with procedures for mutual recognition of legitimate interest and procedures for notifications of revocation of access. The implementing acts will be in place by 10 July of 2025.
The deadline for the transposition of the elements of the Directive dealing with the Beneficial Ownership of corporate entities and trusts, as per article 10(6), is 10 July of 2026. The Deputy should note that the associated work on this has already commenced by my officials.
294. Deputy Mark Wall asked the Minister for Finance the changes that have been brought in that use the tax-free allowance of a pensioner on their State pension first, rather than any private pension they may have; and if he will make a statement on the matter. [3134/25]
Amharc ar fhreagraI am advised by Revenue that there has been no change to the manner in which payments from the Department of Social Protection (DSP) are taxed.
The DSP State pension (contributory) is a taxable source of income, similar to other DSP payments including Jobseekers’ Benefit and Maternity Benefit. As such, it is liable to Income Tax (IT) although it is not subject to the Universal Social Charge (USC) or Pay Related Social Insurance (PRSI).
The State pension is paid gross to the recipient. Where an individual is in receipt of the State pension from DSP and also has an additional source of income such as an occupational pension, Revenue confirms that the mechanism used to collect the tax due on the gross DSP payments is by reducing the individual’s annual tax credits and rate band by the annual amount of their DSP income. Tax due on both the DSP income and any additional income will therefore be deducted from the additional income, only.
For example, for a taxpayer liable at the standard rate of tax of 20%, an increase of €5 per week in a DSP payment means that tax on an additional €260 per annum will be collected over the course of the year, by reducing a person’s tax credits by €52 for the year or €4.34 per month.
Revenue further advise that depending on particular circumstances, individual’s may also be entitled to certain tax credits; tax reliefs and exemptions in order to reduce the amount of tax due.
295. Deputy Pearse Doherty asked the Minister for Finance to provide information on the Insurance Investment Fund; the way the fund is stored and accounted for by the Central Bank; the annual revenue into the fund each year since 2018; the cumulative total within the fund each since 2018; and if he will make a statement on the matter. [3141/25]
Amharc ar fhreagraThe purpose of the Insurance Compensation Fund (ICF) is to provide a certain minimum level of protection for insurance policy holders should an insurance company go into liquidation. The Fund also allows certain insurance company administrators to apply to the High Court for funding where necessary in order to enable them to meet their financial obligations as they arise.
The Central Bank of Ireland has responsibility under Section 6 of the Insurance Act 1964 to carry out an annual assessment of the needs of the Fund and, where it is of the opinion that the state of the Fund is such that financial support should be provided for it, it is allowed to determine an appropriate financial contribution to be paid to the Fund.
Where there are insufficient funds available to enable payments out of the Fund to be made expeditiously, Section 5 of the Insurance Act 1964 allows the Minister for Finance to advance the necessary monies to the Fund in the form of a repayable loan, on the recommendation of the Central Bank. Such advances are subject to interest charges.
The following figures, which are submitted to me annually by the Central Bank of Ireland, are laid before the Houses of the Oireachtas and published annually on my Department's website in the Annual Report on the Administration of the Insurance Compensation Fund.
In accordance with section 2(8) of the Insurance Act 1964, the financial statements for the ICF for the year ended 31st December 2024 will be audited by the C&AG and included in a report to be laid before the Oireachtas in 2025. This report will include the audited figures for 2024.
The way the Fund is stored and accounted for by the Central Bank of Ireland
The Central Bank of Ireland (the Central Bank) is responsible for the administration of the Insurance Compensation Fund pursuant to the Insurance (Amendment) Act 2018 which was enacted on 24 July 2018. The Fund balance is deposited with the Central Bank. The Central Bank prepares separate financial statements for the Fund in accordance with FRS102, the financial reporting standard applicable in the UK and Ireland issued by the Financial Reporting Council (FRC), as promulgated by Chartered Accountants Ireland.
Annual Revenue and Cumulative Total within the Fund
The annual revenue into the fund each year since 2018 and the cumulative total within the fund each year since 2018 can be found in the table below:
|
Year |
2018 |
2019 |
2020 |
2021 |
2022 |
2023 |
|
€m |
€m |
€m |
€m |
€m |
€m |
|
|
Annual Revenue* |
69.1 |
130.1 |
100.8 |
92.9 |
116.8 |
118.8 |
|
Cash Balance of Fund held with CBI |
62.5 |
92.3 |
40.9 |
53.2 |
27.5 |
12.7 |
|
Deficit of Fund |
(738.1) |
(645.9) |
(569.9) |
(500.5) |
(324.0) |
(227.3) |
* The ICF is financed through contributions received from non-life insurance companies up to a maximum of 2% of the aggregate of the gross premiums paid to that insurer or insurer authorised in another Member State in respect of policies issued in respect of risks in the State. In this regard, it should be noted that excluded risks are not levied.
296. Deputy Pearse Doherty asked the Minister for Finance to provide information on the Motor Insurers Insolvency Compensation Fund (MIICF); the annual revenue into the MIICF since 2018; the rate applied each year since 2018; the total cumulative amount in the fund each year since 2018; and if he will make a statement on the matter. [3142/25]
Amharc ar fhreagraThe Motor Insurers Insolvency Compensation Fund (MIICF) was established following the commencement of the Insurance (Amendment) Act 2018 (the 2018 Act). It is funded by contributions from those insurers who provide motor insurance in Ireland. Before the establishment of the MIICF, in the event of an insurance provider becoming insolvent, the maximum compensation that could be provided was 65% of the compensation due to the victim through the Insurance Compensation Fund (ICF). Following its establishment, the MIICF effectively functions as a source of bridging funding in those circumstances, enabling the victim to receive 100% of the applicable compensation.
As outlined in the 2018 Act, the MIICF was designed to build up a balance of approximately €200 million, of which monies will be invested until such time as the funds are called upon by the ICF to meet claims. The MIICF is managed and administered by the Motor Insurers Bureau of Ireland (MIBI) – a not for profit organisation whose principal role is to compensate the victims of road traffic accidents caused by uninsured and unidentified vehicles.
The following figures, which are submitted to me annually by the Motor Insurers Bureau of Ireland, are laid before the Houses of the Oireachtas and published annually on my Department's website in the Annual Report on the Motor Insurers Insolvency Compensation Fund.
In accordance with section 3D(5) of the Insurance Act 1964, the MIBI will submit the MIICF Annual Report for the year ended 31st December 2024 not later than 31 July 2025, which will subsequently be laid before the Oireachtas. This report will include the audited figures for 2024.
Annual Revenue
The following table sets out the annual revenue (i.e. financial contributions and investment income) received into the MIICF each year for the years 2018 to 2023:
|
Year |
2018 |
2019 |
2020 |
2021 |
2022 |
2023 |
|
€m |
€m |
€m |
€m |
€m |
€m |
|
|
Annual Revenue received into the MIICF |
2.5 |
41.5 |
38.8 |
38.7 |
38.3 |
39.7 |
Contribution Rate
In accordance with section 3G of the Insurance Act 1964, a 2% rate was applied for gross written motor insurance premiums between 2018 and 2023. This rate was reduced to 1% in 2024 after the total value of the fund exceeded €150m. The rate for 2025 is 0%.
Cumulative value of the MIICF
The following table sets out the cumulative value of the MIICF each year for the years 2018 to 2023:
|
Year |
2018 |
2019 |
2020 |
2021 |
2022 |
2023 |
|
€m |
€m |
€m |
€m |
€m |
€m |
|
|
Cumulative Value of the MIICF |
2.3 |
43.3 |
82.8 |
116.4 |
148.1 |
193 |
297. Deputy Pearse Doherty asked the Minister for Finance if he will consider reviewing the application of the 1% life insurance levy on people with a life-long disabilities, particularly in cases where they rely heavily compensation awards; and if he will make a statement on the matter. [3143/25]
Amharc ar fhreagraI am advised by Revenue that section 124B of the Stamp Duties Consolidation Act 1999 provides for a Stamp Duty levy of 1% to be levied in respect of certain life insurance premiums paid to insurers. The levy is payable by the insurers to Revenue on a quarterly basis. It was introduced in 2009.
The levy is applied to the premiums paid under certain classes of life insurance policies to the extent that the risks to which the policies relate are located in the State. These classes are as follows:
• Class I – Life assurance and contracts to pay annuities on human life;
• Class II – Contracts of insurance to provide a sum on marriage or the birth of a child;
• Class III – Class I policies linked to investment funds
• Class IV – Permanent Health Insurance;
• Class V – Tontines, i.e., associations of subscribers which are established to benefit the beneficiaries of a subscriber on the death of that subscriber; and
• Class VI – Capital redemption operations, i.e., in return for a single (or periodic) payment agreed in advance, the policy holder will have a right to a specified sum for a specified period in the future.
Certain premiums are excluded from the levy, namely:
• premiums received in respect of pension business, as defined in section 706 of the Taxes Consolidation Act 1997, and
• premiums received in the course of or by means of reinsurance.
In relation to the 1% levy on certain life insurance premiums, as you may be aware my predecessor as Minister for Finance published the Report of the Funds Sector 2030 (Review) on 22 October. The Review Team has put forward a series of recommendations to address issues and, critically, to put in place measures that will help us to navigate the further changes that are coming in a controlled way.
The Report of the Review is available at: www.gov.ie/en/publication/da341-funds-sector-2030-a-framework-for-open-resilient-and-developing-markets/
Further guidance on the operation of section 124B may be found at www.revenue.ie/en/tax-professionals/documents/notes-for-guidance/stamp-duty/2024/part-09-levies.pdf and further guidance on what is considered ‘pension business’ under section 706 of the Taxes Consolidation Act 1997 may be found at www.revenue.ie/en/tax-professionals/documents/notes-for-guidance/tca/part26.pdf
298. Deputy Pearse Doherty asked the Minister for Finance to outline all taxes including levies and stamp duty on life insurance policies; the amount raised through each tax measure in the most recent year for which data is available; the rationale and purpose of each tax measure; and if he will make a statement on the matter. [3144/25]
Amharc ar fhreagraI am advised by Revenue that the Stamp Duties Consolidation Act 1999 (SDCA 1999) provides for the following stamp duties in relation to life insurance policies:
• Section 124B provides for a levy on certain premiums of life assurance. Under this section 1% of the premium is payable by the insurer.
• Section 2 and Schedule 1 provide for Stamp Duty on conveyance or transfer on sale of a policy of insurance or a policy of life insurance where the risk to which the policy relates is located in the State. 0.1% of the consideration is payable by the parties to the transaction.
There are two regimes under which a life assurance policy may be taxed – the “old basis business” regime applies to life assurance policies written before the 1st of January 2001, and the “new basis business” regime applies for policies written on or after that date.
Under the old basis business regime, life assurance companies are taxed on the “Income less Expenditure” (or “I-E”) basis of taxation. The profits calculated under I-E are apportioned between those that relate to the shareholders of the insurance entity and those that relate to the policy holder. The shareholder portion is taxed at 12.5%. The life assurance company is taxed at 20% on the policy holder portion of the profits on an annual basis. The policy holder is not subject to any further tax on the surrender, maturity or assignment of the life policy.
The life assurance company is required to return its profits comprising of the shareholder and the policy holder portions in its corporation tax return. As life assurance companies are not required to provide a breakdown between the shareholder and the policy holder portions of the profits in the return it is not possible to isolate the tax paid on the policy holder portion under the old basis business regime.
The vast majority of life assurance policies in Ireland are now taxed under the “new basis business” regime (also referred to as the “gross roll-up” regime) which was introduced by Finance Act 2000.
Under this regime, the life assurance company is subject to tax at the rate of 12.5% on its shareholder profits, that is the profits which do not relate to investments made on behalf of policy holders. The life assurance company is not subject to tax on its policy holder profits on an annual basis, but rather is required to a “Life Assurance Exit Tax” (LAET) where there is a gain on the happening of a “chargeable event” in respect of policies held by certain policy holders.
A chargeable event generally occurs on the surrender, maturity or assignment of a life policy. A chargeable event also occurs on the ending of an 8-year period beginning with the inception of the life policy and each subsequent 8-year period beginning when the previous one ends. This 8-year deemed disposal was introduced to specifically prevent the indefinite deferral of tax.
The rate of LAET depends on whether the policy holder is an individual (41%) or a company (25%), although a rate of 60% can apply where the policy constitutes a personal portfolio life policy. The personal portfolio life policy legislation was introduced in Finance Act 2002 to address a specific misuse where the policy holder could select or influence the underlying assets of the policy. Life assurance companies are required to make bi-annual tax filings and payments in respect of their LAET obligations for the year. LAET represents a final tax for a policy holder and generally no further tax arises on the surrender, maturity or assignment of the life policy.
I am further advised that the available statistical information in respect of Stamp Duty receipts is published on the Revenue website at www.revenue.ie/en/corporate/information-about-revenue/statistics/capital-taxes/stamp-duty/receipts.aspx
Available statistical information in respect of LAET receipts is published on the Revenue website at www.revenue.ie/en/corporate/information-about-revenue/statistics/receipts/taxhead/index.aspx
299. Deputy Pearse Doherty asked the Minister for Finance if he will review the practice of car dealers receiving commission from motor finance lenders; the current legal framework regarding such commissions; and if he will make a statement on the matter. [3145/25]
Amharc ar fhreagraMotor finance provided through Hire Purchase including Personal Contract Plans (or 'PCPs') became a fully regulated activity in Ireland in May 2022 when the Consumer Protection (Regulation of Retail Credit and Credit Servicing Firms) Act 2022 came into force and made the activities of consumer hire and hire purchase a fully regulated activity by the Central Bank.
The Consumer Protection Code General Principles and Chapters relating to suitability and advertising only were applied to regulated firms engaged in these activities from August 2022. The Central Bank is currently undertaking a review of the Consumer Protection Code. Its intention is that all relevant sections of the new Consumer Protection Code will apply to these expanded credit activities.
Discretionary commission arrangements link the commission received by the credit intermediary to the interest paid by the consumer. The credit intermediary is allowed to set the interest rate and the commission earned is the difference between the base rate set by the product producer/lender and the interest rate set by the credit intermediary on the motor finance arrangement.
Following engagement with the sector and a review in 2024, the Central Bank of Ireland instructed regulated firms who were applying Discretionary Commission Arrangements to motor finance hire purchase arrangements to cease the practice from 31 July 2024. All relevant motor finance providers in Ireland have now ended this practice.
The Central Bank has advised that it decided to cease this practice in advance of the relevant sections of the new Consumer Protection Code coming into force, on a go forward basis, since 31 July 2024. The Central Bank concluded from the review undertaken that the practice was not consistent with market outcomes that the Consumer Protection Code is seeking to achieve.
If a consumer has any concerns or questions in relation to their motor finance product taken out in the past, on this or any other matter, they can contact the regulated firm that sold the product. The consumer protection framework provides that any consumer who is not satisfied with how a regulated firm is dealing with them in the course of providing a service can make a complaint directly to the regulated firm. If a consumer is not satisfied with how their complaint is dealt with by a regulated entity, they can then make a complaint to the Financial Services and Pensions Ombudsman (FSPO).
300. Deputy Mairéad Farrell asked the Minister for Finance if he will provide the total spend on the information collected by the Central Bank on financial vehicle corporations (FVC) (details supplied) by all FVCs for 2022, 2023 and 2024, in tabular form; and if he will make a statement on the matter. [3161/25]
Amharc ar fhreagraI have been informed by the Central Bank of Ireland, that it collects and publishes data on Financial Vehicle Corporations (FVCs) as defined in Regulation (EU) No 1075/2013 of the European Central Bank of 19 18 October 2013 concerning statistics on the assets and liabilities of financial vehicle corporations engaged in securitisation transactions (recast).
The full quarterly data series for Ireland is available in the Statistics section of the Central Bank website while Euro area statistics are available in the Monetary and Financial Statistics section of the ECB website. Data on expenditure items including ‘financial services fees and commissions’ are collected on annual basis with reference to end-Dec. The information about fees paid are included in Special Purpose Entities Statistical Releases found on the Central Bank website at: www.centralbank.ie/statistics/data-and-analysis/other-financial-sector-statistics/special-purpose-entities. The total fees paid by Special Purpose Entities can be seen in the table below. The 2024 data will be published on 4th March 2025.
|
In €millions |
2021 |
2022 |
2023 |
|
Total Fees |
1,108 |
1,527 |
1,319 |
|
Total FVC (securitisation) |
577 |
889 |
724 |
|
Total SPV (non-securitisation) |
531 |
638 |
595 |
Furthermore, the ECB publishes a list of reporting FVCs for all Euro area countries (including Ireland) on its website at:
www.ecb.europa.eu/stats/financial_corporations/list_of_financial_institutions/html/index.en.html
301. Deputy Denise Mitchell asked the Minister for Finance if his Department, or any body under its aegis, currently outsources cleaning services and/or service officer/security officer roles to private companies; the value and length of any related contract, by body, in tabular form; and if he will make a statement on the matter. [3196/25]
Amharc ar fhreagra302. Deputy Denise Mitchell asked the Minister for Finance if his Department, or any body under its aegis, currently directly employs cleaners and/or service officers; if so, the number of staff employed in each role; the value and length of any related contract, by body, in tabular form; and if he will make a statement on the matter. [3214/25]
Amharc ar fhreagraI propose to take Questions Nos. 301 and 302 together.
I wish to advise the Deputy that my Department does not outsource service officer/security officer roles. In terms of cleaning services, the Department uses a private cleaning company. This contract has been in place since November 2022 following a competitive tendering process for a duration of two years with the option of two extensions for one year each. The value of the contract is €1.4 million (ex VAT).
It should be noted this contract is for both the Department of Finance and the Department of Public Expenditure, National Development Plan Delivery and Reform's Dublin offices as there is a shared service in respect of facilities management, including cleaning for both Departments.
The information on the number of directly employed service officers by my Department is set out in the below table.
|
Number of directly employed service officers |
Salary Scale |
Length of contract |
|
1 x Head Services Officer |
Head Services Officer (Personal Pension Contribution) Salary Scale |
Permanent |
|
12 x Services Officer |
Services Officer (Personal Pension Contribution) Salary Scale |
Permanent |
|
1 x Services Officer |
Services Officer Salary Scale |
Permanent |
|
2 x Services Attendant |
Services Attendant (Personal Pension Contribution) Salary Scale |
Permanent |
The bodies under the aegis of my Department have provided the requested information below.
The Irish Fiscal Advisory Council (IFAC) has a Shared Service Agreement with the Economic & Social Research Institute (ESRI) in respect of the provision of office accommodation and building services on a pro rata basis and support services relating primarily to accounts, IT and other corporate services.
The National Treasury Management Agency (NTMA) provides certain business and support services and systems to Home Building Finance Ireland (HBFI), Strategic Banking Corporation of Ireland (SBCI) and the National Asset Management Agency (NAMA). Facilities management and workplace support is one such service provided to these bodies. The National Treasury Management Agency does not have any contracts in place for the provision of cleaning or security services as these services are provided via its building landlord.
The Tax Appeals Commission does not directly employ or outsource cleaners, service officers or security officers.
Business supports for the Credit Review Office are provided by Enterprise Ireland.
|
Body under aegis of Department of Finance |
Outsourced Service (cleaning services and/or service officer/security officer roles) |
Value of contract (Ex. VAT) |
Length of contract |
|
Central Bank of Ireland |
The Bank outsources cleaning and some service officer/security services to a private company, as part of an overall Total Facilities Management contract. Following a public procurement process this contract commenced 1 January 2025. |
The estimated value of the contract tendered for is circa €46.5m |
5 years, with an option for a 2-year extension. |
|
Financial Services and Pensions Ombudsman (FSPO) |
Cleaning (The FSPO does not outsource service officer or security services) |
€150,000 |
5 years, including extensions. |
|
Irish Financial Services Appeals Tribunal (IFSAT) |
Cleaning services (Security is included in rent. IFSAT does not engage any security/service officers directly) |
€559.47 per annum |
No contract in place |
|
Office of the Comptroller and Auditor General |
Security services including reception duties |
€52,000 per annum |
2 years with option for two 12-month extensions. |
|
|
Cleaning services The Office of the Comptroller and Auditor General is not the owner of this contract. The contract is part of a multi supplier framework agreement for the provision of commercial cleaning and window cleaning services to Central Government which covers a number of government buildings. |
The value of the Office’s share is approximately €38,000 per annum |
3 years with option for two 12-month extensions. |
|
Office of the Revenue Commissioners |
Office Cleaning |
€4,855,500 |
3 years with option to extend for a further 12 months |
|
|
Window Cleaning |
€423,000 |
3 years with option to extend for a further 12 months |
|
Security Services |
€5,183,396 |
2 years with option to extend for a further 24 months |
|
|
Body under aegis of Department of Finance |
Number of directly employed cleaners and/or service officers in each role |
Value of contract (Ex. VAT) |
Length of contract |
|
|
|
|
|
|
Central Bank of Ireland |
Cleaner x 1 |
Undisclosed- the value of contract relates to a specific person. Including the value would allow identification of their remuneration on the public record |
Contract of indefinite duration |
|
Office of the Comptroller and Auditor General |
Head Services Officer x 1 |
N/A - person is on an employment contract |
N/A - person is on an employment contract |
|
Office of the Revenue Commissioners |
Cleaners x 3 |
See below# |
Max retirement age is 70* |
|
Service Officers x 45 |
See below# |
Max retirement age is 70* |
# Revised pay scales with effect from 01 October 2024 for Civil Servants appointed on or after 6th April 1995 who are paying the Class A rate of PRSI contribution and making an employee contribution in respect of personal superannuation benefits (PPC) for General Service Grades.
303. Deputy Tom Brabazon asked the Minister for Finance if he will bring forward measures to change the tax treatment of exchange traded funds in view of the funds review published by his Department in October 2024; and if he will make a statement on the matter. [3229/25]
Amharc ar fhreagraThe term “Exchange Traded Fund” or “ETF” is a general investment industry term that refers to a wide range of investments. ETF investments can take many different legal and regulatory forms even where they are established within the same jurisdiction.
An ETF is an investment fund that is traded on a regulated stock exchange. A typical ETF can be compared to a tracker fund in that it will seek to replicate a particular index. ETFs tend to be tax opaque, which means that an investor in an ETF is not taxed on any income earned by, or gains accruing to, the ETF, but rather the investor is taxed on any distributions received or gains made on the disposal of the units in the ETF. This is not dissimilar to a shareholder in a company – the shareholder is not taxed on the profits of the company as they arise but rather on distributions received from the company or on any gain arising on a disposal of shares in the company.
There is no separate taxation regime specifically for ETFs. As collective investment funds, they generally come within the regimes set out in the Taxes Consolidation Act 1997 for such funds. The domicile of the ETF will generally determine the applicable fund regime, specifically whether the ETF falls within the domestic fund regime or the offshore fund regime. This response confines itself to the position for domestic ETFs and ETFs deemed ‘equivalent’ to a domestic ETF located in the EU/EEA/OECD.
Where the domestic fund regime applies, a ‘gross roll-up’ applies such that there is no annual tax on income or gains arising to a fund but the fund has responsibility to deduct an exit tax in respect of payments made to certain unit holders in that fund. To prevent indefinite or long-term deferral of this exit tax, a disposal is deemed to occur every 8 years. Where the offshore fund regime applies, the applicable tax treatment depends on the location and nature of the fund.
To assist taxpayers in determining the appropriate tax treatment for investments in ETFs, Revenue has published guidance which is available at www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-27/27-01a-03.pdf.
While the funds review report included a number of regulatory recommendations in respect of ETF’s, it did not include a specific recommendation regarding their tax treatment.
The 2025 Programme for Government has committed to progress and publish an implementation plan taking into consideration the Funds Review recommendations to unlock retail investment and opportunities to grow this sector in Ireland and the Minister, working with his officials, will consider next steps in this regard over the coming months.
306. Deputy Ged Nash asked the Minister for Finance the total value of the annual mileage claims for each Ministers of State assigned to his Department in 2023 and 2024 respectively; to provide a breakdown for each year of the individual claims; the annual cost of overnight allowances related to the civilian drivers of each relevant Minister of State in 2023 and 2024; and if he will make a statement on the matter. [3250/25]
Amharc ar fhreagraI wish to inform the Deputy that Minister of State Neale Richmond claimed €6,154.25 in 2024.
I wish to inform the Deputy that Minister of State Jennifer Carroll MacNeill claimed €10,896.62 in 2023, and €3,503.44 in 2024.
In 2023 the cost of Overnight Allowances for Civilian Drivers in my Department was €2,672.
In 2024 the cost of Overnight Allowances for Civilian Drivers in my Department was €1,309.
Overnight Allowances are paid in line with rates set out by the instructions from the Department of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation.
307. Deputy Ged Nash asked the Minister for Finance to list the composition of his private office, inclusive of the grade and increment of each civil servant assigned to their office; whether they are located in the private or constituency office; the value of any allowance paid to those individuals and the purpose of each allowance; and if he will make a statement on the matter. [3268/25]
Amharc ar fhreagraI wish to inform the Deputy that the composition of staff in my office comprises three staff assigned to the constituency office and nine staff in the Ministers private office.
The grade and assignment of each staff member is listed in Table A.
Civil Service salary scales apply to these posts and increment point is in line with the officers service.
Table A
|
Grade |
Constituency/Private Office |
Increment |
|
Parliamentary Assistant |
Constituency Office |
Point on relevant salary scale. |
|
Administrative Assistant |
Constituency Office |
Point on relevant salary scale. |
|
Administrative Officer |
Minister’s Private Office |
Point on relevant salary scale. |
|
Executive Officer |
Constituency Office |
Point on relevant salary scale. |
|
Executive Officer |
Minister’s Private Office |
Point on relevant salary scale. |
|
Executive Officer |
Minister’s Private Office |
Point on relevant salary scale. |
|
Executive Officer |
Minister’s Private Office |
Point on relevant salary scale. |
|
Executive Officer |
Minister’s Private Office |
Point on relevant salary scale. |
|
Clerical Officer |
Minister’s Private Office |
Point on relevant salary scale. |
|
Clerical Officer |
Minister’s Private Office |
Point on relevant salary scale. |
|
Clerical Officer |
Minister’s Private Office |
Point on relevant salary scale. |
|
Clerical Officer |
Minister’s Private Office |
Point on relevant salary scale. |
My Department is in the process of conducting a selection process for the role of Private Secretary to the Minister, which does receive an allowance payment. The allowances payable to private secretaries include payment for all extra duties and expenses attaching to the post and no payment is made to a Private secretary for extra attendance.
The allowance rates for Private Secretary to Minister/Minister of State are €24,952.76 (Personal Pension Contribution Scale) or €23,706.92 (non-Personal Pension Contribution Scale).
